CREO Co., Ltd. (9698) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Aisan Technology Co., Ltd.

ROBOT PAYMENT, Inc.

CREO Co., Ltd.

BeeX, Inc.

System D, Inc.

CE Holdings Co., Ltd.

FFRI Security, Inc.

Aeria, Inc.

coconala, Inc.

V-cube, Inc.

Mental Health Technologies Co., Ltd.

Why is CREO Co., Ltd. ?

Weak Long Term Fundamental Strength with a 0.38% CAGR growth in Net Sales over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 0.38% over the last 5 years

Positive results in Jun 26

ROCE(HY) Highest at 11.73%
RAW MATERIAL COST(Y) Fallen by -10.92% (YoY)
CASH AND EQV(HY) Highest at JPY 12,273 MM

With ROE of 11.33%, it has a very attractive valuation with a 1.38 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 11.26%, its profits have risen by 23.7% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 11.26% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 61.01%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CREO Co., Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is CREO Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

CREO Co., Ltd.

12.15%

1.07

13.34%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.38%

EBIT Growth (5y)

6.36%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.77

Sales to Capital Employed (avg)

2.02

Tax Ratio

28.71%

Dividend Payout Ratio

52.75%

Pledged Shares

Institutional Holding

ROCE (avg)

54.66%

ROE (avg)

10.27%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.38

EV to EBIT

3.45

EV to EBITDA

2.89

EV to Capital Employed

2.89

EV to Sales

0.29

PEG Ratio

0.51

Dividend Yield

ROCE (Latest)

83.68%

ROE (Latest)

11.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

ROCE(HY)

Highest at 11.73%

RAW MATERIAL COST(Y)

Fallen by -10.92% (YoY

CASH AND EQV(HY)

Highest at JPY 12,273 MM

DEBT-EQUITY RATIO (HY)

Lowest at -84.04 %

INVENTORY TURNOVER RATIO(HY)

Highest at 44.79 times

DEBTORS TURNOVER RATIO(HY)

Highest at 8.15 times

PRE-TAX PROFIT(Q)

At JPY 134 MM has Grown at 61.45%

-1What is not working for the Company

NET SALES(Q)

Lowest at JPY 3,333 MM

Here's what is working for CREO Co., Ltd.

Pre-Tax Profit

At JPY 134 MM has Grown at 61.45%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Cash and Eqv

Highest at JPY 12,273 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -84.04 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 44.79 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 8.15 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -10.92% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for CREO Co., Ltd.

Net Sales

Lowest at JPY 3,333 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)